Srinagar, May 15: J&K Bank, the state owned premier financial institution reported a 129 % growth in net profit for the Financial Year 2018-19 at 465 Cr as compared to 202 Cr in the previous fiscal.
In the March quarter bank has reported a profit of 214.80 Cr as compared to 28.41 Cr in the corresponding quarter of FY 2018. Buoyed by strong retail credit growth, sale of partial stake in PNB MetLife and resolution of some large NPLs the total income of the bank rose to Rs 8487 crore in the FY 2018-19 as compared to Rs 7116 Cr a year ago.
The results for the FY 2018-19 and Q4 FY 18-19 were announced by the Bank today after Board of Directors of the Bank adopted the audited numbers of the Bank in its meeting held at Bank’s Corporate Headquarters Srinagar. The growth in J&K state credit has been reported at 23% over the last year and net interest income the difference between interest earned on loans and that paid on deposits grew by 42 % in the 4th quarter of the financial year 2018-19.The NIIM of the bank which is an indicator of profitability was calculated at 4.05 for the 4th quarter and on full year basis it improved to 3.84% as compared to 3.65% in the previous fiscal.
The Chairman & CEO J&K Bank while acknowledging the support and guidance of the Board of Directors in navigating the bank in challenging times attributed the turnaround & stellar growth in the top and bottom line of the bank to the unflinching trust of the promoters and customers of the Bank especially from the J&K state. He commended the management team, business heads & operative staff for robust credit growth, management of NPAs, NPA recovery, improvement in Compliance culture etc. despite a challenging environment.
“Our numbers are unfolding in line with our strategic business plan to direct the focus of our credit expansion in J&K state especially in retail & SME segments. We are continuously gaining market share in J&K besides improving the penetration of credit to hitherto credit starved geographies/segments especially in consumer and housing sectors. If you see our segmental numbers in retail, housing has grown by 79% from 3117 Cr to 5384 Cr, Consumer finance has grown exponentially from 195 Cr to 1978 Cr, Car loans have grown by 37 % from 2000 Cr to 2741 Cr resulting in aggregate retail credit growth of 33%. The Corporate to retail mix of our overall advances is now 43 Corporate to 57% retail as compared 53 Corporate to 47 Retail a couple of years ago.” announced the Chairman.
“The results also validate our medium term growth strategy which is fanning out as envisioned to achieve a total business of about 2.50 Lac Cr with a targeted profit of Rs 2000 Cr, NIIM ranging between 3.5-4%, ROA of 1.3%, ROE of 16% and credit cost below 1% at the end of FY 2022. We will carry forward the momentum of the robust business growth of previous fiscal to the current Financial Year and set the tone of exponential growth for strengthening the new paradigm of sustained profitability. I can say confidently that once our provisioning requirements due to ageing of NPAs are over may be in 3-4 quarters, the best in terms of bottom line is yet to come. “added Parvez Ahmed.
Outlining his vision to take the growth and business of the bank to the next level the Chairman informed about the roll out of new Zonal structure at the District level w.e.f. Q2 of the current financial year to dovetail the state governments budget/development plan with the business plan of the bank with a vision of socio economic development of the state. The Bank he added will be targeting to extend its outreach for facilitating the vast majority of rural population of the state including the bottom of the pyramid population, which is dependent on informal channels for their financial needs. This he said will further strengthen the Bank’s low cost CASA franchise, which at 50.7% is one of the best in the banking industry.
“As I have been saying earlier too, we see a lot of unmet demand and potential for increased lending in sectors of SME, Tourism Infrastructure, Agriculture & Allied, Infrastructure (Government Spending), Home Loan, Personal Finance to Govt. Employees, Horticulture, Gold Loans etc. which is validated by exponential growth in the past few quarters. Promoting the startups & new entrepreneurs also remains our priority area as we go deeper in the geographies in congruence with the policy support for startups at the state and central government level and we will act as an enabler for the bright youths of our state,” said Parvez Ahmed in the statement issued to the press.
The Bank’s total business as on the close of 31st March 2019 touched 1,61,864 Cr comprising of deposits of Rs 89638 Cr and gross advances of Rs 72226 Cr as compared to 1,42,466 Cr an year ago registering an increase of around 14%. The Bank reported a stable low cost of funds at 4.90% with a CASA contribution of 50.7%. The NPA coverage ratio has seen a minor dip on sequential basis to 64.30 % mainly because of downgrade of the IL&FS and its group companies. As a percentage of total loans, the Gross and Net NPA ratios of the bank improved to 8.97% and 4.89 % as compared to 9.96% and 4.90% a year ago. Notably the Bank recovered NPAs of Rs 2750 Cr during the year besides making provisions of over Rs. 1000 crore for bad & doubtful debts.
Metropolitan Project: Over 94 lakh kanals identified in JK
Srinagar, Jul 18: Over 94 lakh kanals of land has been identified across Jammu and Kashmir for developing the state under the ambitious Metropolitan Region Development Authorities (MRDA) project.
Under the project, two Metropolitan Region Development Authorities will reduce the deficit on infrastructure – water supply, roads, sewage, drainage, light rails, e-buses and other amenities.
“The authorities will also develop satellite townships in Greater Jammu and Greater Srinagar. Million square feet IT parks will also be developed in these townships,” the document reads.
Governor Satya Pal Malik-led administration recently announced creation of Jammu Metropolitan Region Development Authority and Srinagar Metropolitan Region Development Authority — to provide an integrative framework for the purpose of planned development of these regions.
As per the details, the government has identified 94,22,465 kanals of land in 2559 villages of 14 districts in the state.
In Kashmir, 1452 villages comprising of 4989304 kanals of land would be covered under MRDA.
In Srinagar district, 124 villages comprising 514116 kanals of land would be covered. In Pulwama, 922715 kanals of land in 240 villages have been identified for implementation of project under MRDA.
Similarly, 331799, 1049195, 451400, 142461 kanals of land would be covered in Kulgam, Baramulla, Shopian, and Bandipora districts respectively.
Around 44,33,161 kanals of land would be covered in Jammu, Samba, Kathua, Reasi, Udhampur under MRDA.
The MRDAs, as per the document, have been selected on the principles of regional planning and development.
An official of Housing and Urban Development Department said a process has begun for acquisition of land for the project.
“All types of land are being covered under MRDAs. Besides government land, we have also identified private land which ought to be acquired. But some land owners are not willing to provide land saying that government is not paying them commensurate to market value,” the official said.
He said the land owners want promulgation of an ordinance to replace old law “which will enable them fair compensation during acquisition”.
Principal Secretary, Housing and Urban Development Department, Dheeraj Gupta said that all types of land were being covered under MRDAs. “We will acquire private land wherever needed,” Gupta added.
India to Pak: Release, repatriate Jadhav immediately
New Delhi, Jul 18: Describing the detention of Indian national Kulbhushan Jadhav in Pakistan as “illegal” and under “fabricated” charges, External Affairs Minister S Jaishankar Thursday urged Islamabad to release and repatriate him immediately.
Making a statement in Rajya Sabha, he said the verdict of the International Court of Justice is not only a vindication for Jadhav but also for all those who believe in the rule of law.
The International Court of Justice on Wednesday ruled that Pakistan must review the death sentence for Jadhav, who has been sentenced to death by a Pakistani military court on charges of “espionage and terrorism”.
Jadhav, 49, a retired Indian Navy officer, was sentenced to death by the Pakistani military court on charges of “espionage and terrorism” after a closed trial in April 2017.
A bench led by President of the Court Judge Abdulqawi Ahmed Yusuf ordered an “effective review and reconsideration of the conviction and sentence of Mr Kulbhushan Sudhir Jadhav”.
The bench also ruled by 15 votes to 1 that Pakistan had violated India’s rights to consular visits after Jadhav’s arrest.
Pakistan “deprived the Republic of India of the right to communicate with and have access to Mr Kulbhushan Sudhir Jadhav, to visit him in detention and to arrange for his legal representation”, the judges had said.
Pakistan was under the obligation to inform India about the arrest and detention of Jadhav under the Vienna Convention, Judge Yusuf had ruled.
Jadhav guilty of crimes against people: Imran
Islamabad, Jul 18: Pakistani prime minister Imran Khan Thursday said that he appreciated the International Court of Justice’s (ICJ) decision to “not to acquit, release & return” Kulbhushan Jadhav, day after the world court in The Hague directed Pakistan to review the death penalty given to the former Indian Navy commander.
Holding Jadhav responsible for “crime against” Pakistani people, Khan said Pakistan will proceed per law.
“Appreciate ICJ’s decision not to acquit, release & return Commander Kulbhushan Jadhav to India. He is guilty of crimes against the people of Pakistan. Pakistan shall proceed further as per law,” Imran tweeted.
On Wednesday, the ICJ ordered Pakistan to make an “effective review and reconsideration” of the conviction and death sentence of Jadhav.
The world court also rejected all objections raised by Pakistan, granting consular access to Jadhav “without further delay”, in a verdict that was hailed in India as a “big victory” for the country. It agreed with India’s stand that Pakistan had violated the Vienna Convention by denying access.
In a reprieve for Jadhav, 49, a retired Indian Navy officer sentenced to death by a Pakistani military court on charges of “espionage and terrorism” after a closed trial in April 2017, a 16-member bench by a 15:1 vote continued the stay on the execution.
A Chinese judge was part of the majority verdict while the ad hoc judge from Pakistan on the bench headed by President of the Court Judge Abdulqawi Ahmed Yusuf of Somalia gave a dissenting opinion.
Rejecting Pakistan’s objection to admissibility of the Indian application in the case, the court in its 42-page order held that “a continued stay of execution constitutes an indispensable condition for the effective review” of the sentence of Jadhav that had strained relations between the two neighbouring countries.
The bench, however, rejected some remedies sought by India, including annulment of the military court’s decision convicting Jadhav, his release and safe passage to India.
Prime Minister Narendra Modi welcomed the verdict, saying “truth and justice” have prevailed while Defence Minister Rajnath Singh and former external affairs minister Sushma Swaraj described it as a “big victory” for India.
Despite the order backing India, Pakistan claimed victory. The country’s Foreign Minister Shah Mahmood Qureshi tweeted: “Jadhav shall remain in Pakistan. He shall be treated in accordance with the laws of Pakistan.” Jadhav was arrested in Balochistan on 3 March, 2016, by Pakistani security agencies and was convicted of being a spy. In April 2017, Pakistan had announced that Jadhav was given death sentence by a military court.